State Senate President Pro Tem Darrell Steinberg, D-Sacramento, left, responds to a question during a news conference held with Assembly Speaker Karen Bass, D-Los Angeles, to discuss the results of Tuesday's special election at the Capitol in Sacramento, Calif., Wednesday, May 20, 2009. The voters rejection of the five-budget-related propositions leaves lawmakers and Gov. Arnold Schwarzenegger searching for ways to fill a projected $21.3 billion budget deficit for the new fiscal year that begins July 1.(AP Photo/Rich Pedroncelli)

Photo: Rich Pedroncelli, AP

State Senate President Pro Tem Darrell Steinberg, D-Sacramento,...

Image 2 of 2

Gov. Arnold Schwarzenegger tours a prison room damaged in a riot, with Aref Fakhoury, left, acting warden for the California Institution for Men, left, and Norma Torres, Assembly member of the 61st District, on Wednesday, August 19, 2009 in Chino, Calif.. Gov. Arnold Schwarzenegger on Wednesday toured the Southern California prison where 175 inmates were injured in a riot earlier this month, likening the devasation to a scene from one of his movies. (AP Photo/The Press-Enterprise, Stan Lim) ** NO SALES; MAGS OUT; MANDATORY CREDIT **

The state Assembly on Monday approved a stripped-down version of a prison bill that by next June would reduce the prison population by 17,000 inmates instead of 27,000 to save the state cash.

Democratic lawmakers approved the legislation by a majority vote only after they removed its most controversial parts, which included plans to allow some sick and elderly inmates to finish their sentences under house arrest or in community hospitals.

The amended bill would reduce the prison population by allowing some prisoners to be released early if they complete certain rehabilitation programs such as earning General Educational Development certificates; change the state's parole system so that some low- and moderate-risk offenders would not be subject to parole revocation; and allow certain felons who violate probation to serve time in county jails.

Republicans, who all opposed the bill, argued that its amended version still would undermine public safety.

But Democrats countered by accusing Republican lawmakers of "fear mongering," adding that the bill would not only save money for the cash-strapped state, but allow the prison system to put more focus on violent criminals.

"While some of you may say, 'If it ain't broke, don't fix it,' I believe the system is very broken," said Assemblywoman Bonnie Lowenthal, D-Long Beach. California's prison system is "too crowded, it's too expensive and it's under a court order (to reduce the prison population). We can't let it bankrupt us."

The proposed prison changes are intended to help California close a $24 billion deficit, in part by trimming $1.2 billion in spending from California corrections. The plan would also relieve overcrowded prisons by reducing the number of inmates that currently total 172,000.

The amended bill would save the state about $300 million this year instead of the estimated $520 million that would have been saved in the original bill. The rest of the $1.2 billion in savings would be realized from direct actions by the governor, who plans to commute sentences of illegal immigrant inmates and transfer them to federal authorities for deportation.

The original bill had been adopted by the Senate on Aug. 21 but had stalled in the Assembly as Speaker Karen Bass, D-Baldwin Vista (Los Angeles County), held closed-door talks with law enforcement officials.

By Monday, all of the major law enforcement groups had removed their official opposition to the bill, the Assembly speaker said.

Bass vowed Monday to continue working to find additional savings in the prison budget.

"My intention is to resolve the $220 million (shortfall) before the end of legislative session," Sept. 11, she told reporters shortly after the 41-35 vote.

The bill now heads back to the Senate.

The controversial parts of the bill that were removed are:

-- Creation of a commission to revamp the state's rules on sentencing and parole.

-- Allowing sick and elderly inmates to serve their sentences in home detention or community hospitals with GPS tracking devices.

-- Changing some felonies such as petty theft to misdemeanors.

-- Changing the grand theft threshold from $400, set in 1982, to $2,500.

These items will likely return as separate pieces of legislation, Bass said.

"The Assembly took a good first step, ... but it's not a complete package," he said in a written statement.

Aaron McLear, a spokesman for Republican Gov. Arnold Schwarzenegger, said the Assembly approved a bill that "contains much-needed reforms to fix our prison system, but there are still questions about how it addresses our overcrowding crisis and our budget."